House values soar, but fears of a property bubble remain

Southend Standard: House values soar, but fears of a property bubble remain House values soar, but fears of a property bubble remain

HOUSE prices are on the up in south Essex in a trend that looks set to continue into 2014.

New figures, from property analysts Hometrack show homes with SS postcodes – including those in Basildon, Southend, Rayleigh, Rochford and Wickford – are up an average of 6.8 per cent.

Average property prices in Thurrock are up 5.8 per cent year-onyear, while Billericay has seen an increase of 7.2 per cent.

Balgores Property Group reckon house prices in Basildon have gone up a whopping 12.5 per cent throughout this year.

The figures come as Hometrack revealed Essex is in the top ten boom places across Britain – with average property prices going up 5.3 per cent in 2013.

Mike Gray, managing director of Southend-based property consultants Dedman Gray, said: “The information from Hometrack is an accurate assessment of the market in south Essex, in particular Southend, Rochford and Castle Point.

“Like anything, with an increase in demand and activity, it is soon followed by an increase in price being achieved – and it looks as though it will continue to rise in the beginning of next year.

“The recent Government mortgage scheme for first-time buyers has also added to an increase in demand.”

But fears have been raised that renters may face the brunt of a housing bubble, with average rent prices already soaring due to increased demand.

First-time buyers have been assisted by Government schemes, such as Help to Buy, which gives people with deposits as low as 5 per cent a helping hand on to, or up, the property ladder.

This has been cited as the reason for prices rocketing.

Managing director of Balgores property group Martin Gibbon said: “The economy has turned a corner undoubtedly. It’s all about supply and demand.

“There are not enough properties to buy, or rent.

“There’s 40 per cent less on the market year-on-year.

“It’s a worry. If there’s not enough to buy or rent you can ask what you like for it.

“Also interest rates are ridiculously low, which potentially will be a problem when interest rates do go up.”

Comments (6)

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9:15am Wed 1 Jan 14

Yermotherwouldn'tlikeme says...

They have maintained a steady growth, on the mainland, Canvey not included
They have maintained a steady growth, on the mainland, Canvey not included Yermotherwouldn'tlikeme

9:58am Wed 1 Jan 14

Leon__ says...

We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us?
We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us? Leon__

10:26am Wed 1 Jan 14

echoforum says...

Leon__ wrote:
We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us?
Spot-On.
Our community is gradually falling into the hands of greedy Estate/letting agents,dodgy developers and slum landlords.
The only home owners will be the elderly.
Whole working generations will be forced away from where they were
raised..
Future generations with no stake in society..
Stop kidding yourselves that a 10% rise in property values is good,it's no better for you then the 10% rise in your fuel bills this year.
Its not looking good for 2014.
[quote][p][bold]Leon__[/bold] wrote: We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us?[/p][/quote]Spot-On. Our community is gradually falling into the hands of greedy Estate/letting agents,dodgy developers and slum landlords. The only home owners will be the elderly. Whole working generations will be forced away from where they were raised.. Future generations with no stake in society.. Stop kidding yourselves that a 10% rise in property values is good,it's no better for you then the 10% rise in your fuel bills this year. Its not looking good for 2014. echoforum

12:15pm Wed 1 Jan 14

Nebs says...

Leon__ wrote:
We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us?
You should try a positive thinking course.
10 year gilts are telling us that the government strategy seems to be working. People don't want gilts as they would rather invest elsewhere anticipating better returns.
Getting on the housing ladder is always difficult, you need to make an effort. Mortgage rates may go up and down, but the amount you borrowed doesn't go up so inflation erodes what you owe.
[quote][p][bold]Leon__[/bold] wrote: We're not in a bubble now? Prices are affordable by average salaried people on traditional x3/x4 wage multiples and historic interest rates? What are 10-year gilts telling us?[/p][/quote]You should try a positive thinking course. 10 year gilts are telling us that the government strategy seems to be working. People don't want gilts as they would rather invest elsewhere anticipating better returns. Getting on the housing ladder is always difficult, you need to make an effort. Mortgage rates may go up and down, but the amount you borrowed doesn't go up so inflation erodes what you owe. Nebs

3:05pm Wed 1 Jan 14

emcee says...

I give it one more generation and we will be a majority renting society, if we are not already.
House price rises are a false economy and only benefit Estate Agents (who are instrumental in affecting house prices in the first place), those those who buy for investment, and those "downsizing". For any other home owner there is no benefit.
I give it one more generation and we will be a majority renting society, if we are not already. House price rises are a false economy and only benefit Estate Agents (who are instrumental in affecting house prices in the first place), those those who buy for investment, and those "downsizing". For any other home owner there is no benefit. emcee

7:13pm Wed 1 Jan 14

profondo asbo says...

scrap help to buy and raise stamp duty on higher valued property.
scrap help to buy and raise stamp duty on higher valued property. profondo asbo

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